Table of Contents

Table of Contents for Preferreds

Introduction: The Bulls are Running! 9
1 But There Is a Problem! 11
Income Investing Is Always “Safe”? 12
Income Statistics Are Badly Misused 14
Agency Ratings Provide a False Sense of Security 17
Know Thy Market Benchmark
2 Basic Rules For Income Investing 19
Nothing Is New 20
Owning and Loaning—The Core Basics
Many Bond Markets 22
Income Investment Costs 25
Diversification
Investing’s Two Biggest Dangers 26
Inflation, Taxes and the U.S. Dollar 28
Interest Rates and Investment Returns 29
Income Mutual Funds 33
~ Asset Turnover
~ Bond Mutual Funds Versus Buying and Holding Bonds 34
~ Open-End Versus Closed-End Funds
~ Management Fees
~ Monthly Income
~ Account and Transaction Size 35
3 Preferred Stocks, A Wall Street Orphan 37
What Is a “Preferred” Anyway? 41
Where to Find Them? 42
Preferred Stock Long-Term Performance
Preferreds’ Performance Versus Other Income Investments 43
Advantages 46
Disadvantages 47
4 Winans International Preferred Stock Index™ (WIPSI™) 49
History 50
Current Components of WIPSI (Even Weighting) 51
Supplemental Information 52
Applications
5 Investment Analysis of Preferred Stocks 53
Basic Analysis of the Winans International Preferred Stock Index™ (WIPSI™) 56
~ Data Examined
~ Moving Average Analysis
Basic Analysis of Individual Preferred Stocks 63
~ Selection Process
~ Data Filtering Analysis
~ Fundamental and Ratings Analysis
~ Moving Average Analysis 66
6 Portfolio Management: Bringing It All Together 72
Setting a Realistic Performance Goal 75
Executing the Investment Game Plan
Monitoring the Portfolio 76
Portfolio Health and Quality 78
Rebalancing the Portfolio 80
7 Preferred Practical Tips 83
8 Advanced Analysis of the WIPSI™ 87
Charts Types And Data Examined 88
Charting Techniques 94
Moving Averages 115
Oscillators 126
Relative Strength (Ratio Charts) 130
9 Advanced Analysis of Individual Preferred Stocks 137
Individual Preferred Stocks Used in This Analysis 138
Data Filtering
Charts and Data Examined
Charting Techniques and Volume Interpretation 139
Moving Averages 149
Oscillators 163
Relative Strength (Ratio Charts) 170
Fundamental and Ratings Analysis 178
Research Conclusions 181
10 Summary 187
11 Appendices 189
WIPSI™ Specifications 190
~ Index Construction
~ ~ Data Used
~ ~Data Categorization
~ ~Data Examination 191
~ ~Index Composition
~ ~Replacement Components 192
~ ~Exclusion from the Index
~ Index Weighting 194
~ Calculations 195
~ WIPSI Use and Licensing
Preferred Stock Information 196
List of Charts 197
List of Exhibits 201
List of Tables 202
Sources 203
Disclosure Page 204
About the Author 205